Joel talks with Paco de Leon from Weird Finance about how investing in relationships impacts your finances. They discuss the consequences of being too frugal, the importance of self-awareness and priorities in personal finance, investing in relationships and Airbnb hosting, the negative effects of excessive internet usage, and the influence of simplicity on finances.
Simplicity in managing finances is significant, identifying what truly matters and spending actively
In-person connections and spending time outdoors are crucial for genuine connections in our society
Modeling good financial behavior for children should start early and include them in financial discussions
Deep dives
Importance of simplicity and the impact of childhood experiences on financial mindset
Joel Larsgard, co-host of the How To Money podcast, discusses the significance of simplicity in managing finances. He emphasizes the importance of identifying what truly matters and spending money actively on those things. Joel shares that his personal finance journey was influenced by his parents' financial struggles during his childhood, which motivated him to ensure money wouldn't be a point of contention in his future relationships. However, he acknowledges that finding a balance is crucial since being overly frugal can cause problems as well. Joel highlights the importance of understanding one's values and spending money accordingly.
The impact of in-person connections on overall well-being
Joel emphasizes the importance of in-person connections and spending time outdoors. He advocates for engaging in activities such as hiking, socializing with friends, and enjoying simple pleasures like biking. He believes that our society's lack of trust in civic organizations and local institutions has led to a decline in genuine connections. Joel shares his own experiences and mentions the negative effects of excessive screen time and reliance on social media for connection. He encourages listeners to prioritize face-to-face interactions and build relationships within their communities.
Teaching children about money and modeling financial behavior
As a parent, Joel stresses the importance of modeling good financial behavior for children. He believes that actions and conversations about money should start early and be ongoing. Joel suggests introducing children to the concept of money through chores and allowing them to make decisions on saving and spending. He also shares his plans to discuss more complex financial topics, like jobs and saving for the future, as his children grow older. Joel emphasizes the need for including children in financial discussions instead of waiting until they reach adolescence.
Spending Intentionally on Things that Matter
Spending money intentionally on the things that matter to you, even if they are unconventional or may be considered frivolous by others, can lead to greater fulfillment and control over your life. The speaker shares personal examples, like driving a modest car and spending on folk art, which align with their values and bring them joy. They emphasize the importance of making conscious choices about how to spend money and not feeling pressured to conform to societal norms. By prioritizing what truly matters to you, you can achieve financial progress while still enjoying the things that bring you happiness.
Recognizing the Influence of Cultural Trends
The speaker discusses the impact of cultural trends on personal finance. They note that modern trends, such as increased isolation and a lack of strong community connections, can lead to negative financial habits and a sense of hopelessness. However, the speaker encourages individuals to recognize the influence of these trends and actively make changes in their own lives. They emphasize the importance of building strong relationships, investing in community, and focusing on what truly brings joy and fulfillment. By challenging societal norms and embracing individuality, one can regain control over their financial future and pursue a path that aligns with their values.
Enjoy a recent convo Joel had with Paco de Leon over at the Weird Finance podcast as they discuss how investing in relationships impacts your finances!
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